Which of the Following Is True of Banks

question 85

Multiple Choice

Which of the following is true of banks?

• A)Banks reduce the opportunity cost of holding idle cash.
• B)Banks act as intermediaries between the government and private investors.
• C)Banks can reduce risk by lending to rich borrowers.
• D)Banks reduce the transaction costs of borrowing and lending money.
• E)Banks can reduce risks by extending more loans.

---

Definitions:

Terry-Cloth

is a fabric with loops that can absorb large amounts of water, commonly used for towels and bathrobes.

Educational Neglect

A form of child neglect where a caregiver fails to provide appropriate schooling or educational opportunities.

Skips School

The act of not attending school classes without permission or valid reason, commonly referred to as truancy.

Bullied

Being subjected to repeated aggressive behavior, physical or psychological, by an individual or group, intending to harm or intimidate.